Do you pay your property taxes?

Are you a first time home owner?  If so then welcome to the wonderful world of taxation.

Property Tax is commonly referred to as Land Tax and is levied on a person in possession of land such as the owner, occupier or mortgagee.

This type of tax is due April 1 of every year.  Payment is allowed in two or four equal installments.  If you are thinking that maybe you will skip paying this tax be careful of incurring penalties. These penalties include interest to be charged in addition to the amount previously owed. This interest continues to accumulate every year until the amount is paid in full.

Why pay property tax?

Okay I know what you’re thinking as a quick glance at your budget makes you cringe at the thought of squeezing more money from it to pay property tax but think of the benefits of  paying the tax.

Property Tax is used to fund property related services such as the collection of garbage, expansion and maintenance of street lighting, community infrastructure and civic improvements, repairs to fire stations and rehabilitation of the parochial road network.

Even though we might not see immediate results, the funds collected are important and are a part of the development of essential services for the community.

The fee paid for Property Tax is not randomly charged, the tax is calculated based on the value of the land. The land is assessed for its market value, that is the price you would expect to receive if the land is sold without the value of anything done to improve the land, such as buildings.

There have been recent rumblings that there might have been increases in property tax which would be effective this year.

The Gleaner, however is reporting that this rumour is unfounded. In an article  dated February 10, 2015 the media house reported that Finance and planning minister Dr Peter Phillips has said there will be no increase in the rates of property taxes in the upcoming fiscal year.

Although that’s good news for consumers, the article stated that the minister also informed the public that there will be a tightening of measures to increase compliance.

So don’t make sure you pay your taxes!

Teri Ann Renee Paisley

Gleaner online writer

Tags: property tax